What a laugh! “Shipping has fallen into a deep slump, heightening fears that the six-year economic expansion may be on its last legs.” says my newspaper this morning. “Expansion”? By dint of printing colossal amounts of money, we have barely recovered to how we were doing before the 2008 credit-crunch — but even that is now failing.
And China is laughing all the way to the bank. It is not because China has any better currency than ourselves — their yen is just as prone to weaknesses and mad episodes as ours are. It is just that they know their currency is artificial and know precisely what to do when they’re in difficulties whereas we. with our dollars, euros, pounds and yen don’t know what to do. And even if we did, could we make the decision in time when the next monetary collapse goes beyond the difficulties that we had in 2008? We wouldn’t be able to print our way out of trouble as we did then. Another bout of Quantitative Easing would be beyond the abilities of even the very rich to largely squirrel it away as they did the last time.